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SK Jewellery to focus on cost controls, digital transformation to weather Covid-19 impact
SK Jewellery Group on Thursday said it will focus on costs controls, while investing in digital transformation such as strengthening its online presence to weather the negative impact of the Covid-19 pandemic.
The group said it experienced an increase in online traffic and transactions, including for higher priced items during the "circuit-breaker" period.
However, revenue generated via its online platforms represents "only a fraction" of its physical store sales, as jewellery remains a "high touch point transaction", the company said.
In a regulatory filing, the Catalist-listed firm noted that it has embarked on cost-cutting measures including "reducing salary costs, inventory optimisation and rationalisation of store renovation projects".
The group is also engaging landlords to obtain rental relief during the period of store closure, and will continue to work with landlords to renegotiate more favourable terms, it said.
Meanwhile, SK Jewellery has placed its expansion plans in China on hold until it has more clarity on the economic situation.
"The group has taken a prudent approach for its overseas operations and has taken steps such as not renewing leases of shops with lower income contribution," the company said in response to a shareholder's query on the progress of Love & Co's expansion in China.
Love & Co is a retail brand under the group which focuses on bespoke bridal jewellery.
"The Covid-19 pandemic is an unprecedented event that has a great impact on the retail and jewellery sector," SK Jewellery said.
Looking ahead, the group said it will focus on digital transformation and engage customers via an omnichannel approach, while maintaining a focus on cost efficiency to thrive in a post-pandemic economy.
The group is set to hold its annual general meeting via electronic means at 10am on Friday.
Shares in SK Jewellery last traded at 8.5 Singapore cents on June 17.